Building halts as firm awaits approval from Nama

WORK HALTED yesterday on a number of sites in London operated by McCabe Builders, the company controlled by developer John McCabe, while the group waits for State toxic assets agency, Nama, to approve funding proposals for the business.

McCabe UK suspended work on all its British sites yesterday until January. The company said it was waiting for Nama to approve funding proposals and was hopeful that work could restart in January.

A number of the company’s property-related loans were transferred from the Irish banks to Nama during the summer. Anglo Irish was one of the institutions that provided credit to McCabe.

Nama does not comment directly on individual cases. A spokesman said yesterday that any requests for credit are dealt with quickly. The agency is currently reviewing business plans submitted by the developers and companies whose loans it has taken over from the banks.

McCabe Builders is controlled by developer John McCabe, who was a partner with one-time high-flier, Paddy Kelly, in the Marriott-managed Rath Hotel in Ashbourne, Co Meath.

In Ireland, the company is active mainly in Dublin city, north Co Dublin and Co Meath. The company worked on commercial and residential construction.

It built the high-profile Abingdon housing estate in Malahide, Co Dublin, a number of hotels, various office blocks and commercial units in Ashbourne, Sandyford and Blackrock, Co Dublin.

The last accounts available for the business, covering the 12 months to August 31st, 2008, show that it was profitable at that point, ending its financial year with a €2.4 million surplus.

It also had a strong balance sheet, with just under €43 million in shareholders’ funds. A high proportion of its assets were accounted for by work in progress valued at over €154 million at the time, while group companies owed it €13 million.

It owed the banks €200 million and Anglo held security over a range of assets, including 109 acres at Rath, Ashbourne, Co Meath, as well as properties in various parts of Dublin.

Its accounts list Bank of Ireland as another secured creditor. Nama is taking over all property-related secured loans worth more than €20 million from five participating banks. It is taking over the debts irrespective of whether the borrowers are meeting their obligations or not.